Goodman Group abandons $1.2 billion Sydney data centre amid community backlash

Goodman Group announced it is cancelling the Project Mars data centre, a $1.2 billion, three-storey facility planned for Lane Cove on Sydney’s north shore. The company informed the NSW Department of Planning that evolving policy and regulatory conditions, together with local community input, led to the withdrawal. The site, located about 20 metres from the nearest house and 160 metres from Lane Cove West Public School, had sparked intense opposition from residents and environmental groups.

During a federal senate inquiry into data centres and AI, Liberal senator Sarah Henderson repeatedly urged Goodman’s development manager Ben McGilp to abandon the plan, calling it unreasonable. Campaigner Sanaa Shah praised the outcome as evidence of growing resistance to data-centre projects nationwide. Industry bodies warned that such community push-back could jeopardise Australia’s competitiveness in the data-centre market.